EC Regulation Supplementing CRR on Liquidity Flows in a Group or IPS
EC published, in the Official Journal of the European Union, the Commission Delegated Regulation (EU) 2017/1230. This regulation supplements Capital Requirements Regulation or CRR (EU Regulation No 575/2013) on the regulatory technical standards further specifying the additional objective criteria for the application of a preferential liquidity outflow or inflow rate for cross-border undrawn credit or liquidity facilities within a group or an institutional protection scheme. It also amends Articles 422(10) and 425(6) of the European Markets Infrastructure Regulation or EMIR (EU Regulation No 648/2012).
This regulation is based on the draft regulatory technical standards submitted by EBA to the EC. This regulation specifies the additional objective criteria laid down in Articles 29(2) and 34(2) of the delegated regulation on liquidity coverage requirement for credit institutions (CDR (EU) 2015/61). The regulation focuses on low liquidity risk profile of the liquidity provider and receiver (Article 2) and the conditions it shall satisfy. Article 3 of the regulation specifies legally binding agreements and commitments between the group entities regarding the undrawn credit or liquidity line while Article 4 states the consideration of the liquidity risk profile of the liquidity receiver in the liquidity risk management of the liquidity provider. This regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Related Links
Effective Date: July 28, 2017
Keywords: EC, Europe, Liquidity Coverage Requirement, Banking, Regulatory Technical Standards, EMIR, CRR
Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards